Market Drivers – US Session, Dec. 8

Gold price retreated below $2,000 for the first time since November 24, extending losses to 0.50%. The XAU/USD pair is trading at $1996, after hitting a daily high of $2034.00. The decline follows the latest US employment report, which showed the labor market is improving, with the economy creating 199K jobs, exceeding forecasts, and the unemployment rate dropping from 3.9% to 3.7%.

Crude oil markets are experiencing a moderate recovery, with WTI climbing 2%. However, pressured markets are set for a seventh straight week of declines. OPEC is working to establish a group-wide agreement on production cuts after member states argued over pumping quotas. Key OPEC members, led by Saudi Arabia, have pursued tighter production caps to keep Crude Oil prices low. Rising fuel demand from China and disobedient OPEC member states disrupt OPEC’s efforts to intentionally undersupply global Crude Oil Markets. Chinese imports of Crude Oil declined by 9% in November compared to last year.

The Canadian dollar gained ground on Friday, gaining ground across the FX board. However, gains are thin and the charts remain choppy as investors adjust their positions and expectations after the US Nonfarm Payrolls (NFP) for November surprised to the upside. The CAD is up a scant tenth of a percent against the US Dollar.

Also Read:
Eurozone yields surge on accelerating US jobs growth

US dollar gains on surging T-yields, strong NFP data

Oil could rebound post further voluntary cuts

USD/JPY climbs back after tumbling during the previous trading session

Stocks rise after surprise change in US unemployment

Stocks rise after surprise change in US unemployment

Stocks rise after surprise change in US unemployment